Wednesday, March 25, 2015

U.S. Treasury Settles With PayPal For $7.6M In Violations Related To Terrorism (NASDAQ: #EBAY)

A settlement was reached and announced today between the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) and PayPal for $7,658,300. Both parties agreed to settle civil liabilities for 486 possible violations of:
  • Weapons of Mass Destruction Proliferators Sanctions Regulations, 
  • Iranian Transactions and Sanctions Regulations, 
  • Cuban Assets Control Regulations, 
  • Global Terrorism Sanctions Regulations; and, 
  • Sudanese Sanctions Regulations.
According to the original charges, PayPal failed to adequately screen users for potential involvement in U.S. sanctions targets in its transactions. As a result, PayPal did not reject or block prohibited transactions from October 20, 2009 to April 1, 2013. During this time PayPal processed 136 transactions totaling $7,091.77 to or from an individual on the OFAC’s List of Specially Designated Nationals and Blocked Persons. Even after the company identified the risk, PayPal's Risk Operations Agents dismissed six separate alerts.
 
You can read about each violation in the original order by clicking on the link below.
 
Settlement with PayPal, Inc.